H3G and O2 are planning for their UK merger to create a mobile-only operator that leads the market in network quality and capacity, taking a contrary approach to the current trend of fixed/mobile convergent strategies
The merger would ease the severe spectral capacity constraints currently faced by both operators, and ease the scale disadvantage suffered by H3G ever since its launch in 2003, allowing a much stronger long term competitor
Post-merger, the UK mobile market will likely end up just as competitive as it is now, with pricing pressure actually more likely to continue into the medium term, and plenty of opportunities and threats for all the main players as the environment re-aligns